The Department of Justice (DOJ) is going after over $225 million in cryptocurrency allegedly stolen in a massive confidence scam. This isn’t a criminal case against individuals yet; instead, the DOJ filed a civil forfeiture complaint. This means they’re trying to seize the crypto itself, arguing it was obtained illegally or used in criminal activity.
A Pig Butchering Scheme
The scam, known as a “pig butchering” scheme, reportedly targeted over 400 victims. These victims were lured into what they thought were legitimate cryptocurrency investments, only to have their money stolen. The criminals then moved the funds through various wallets and blockchains to make it harder to trace.
DOJ’s Response and the Bigger Picture
DOJ Criminal Division head Matthew R. Galeotti stated that this action is part of an ongoing effort to protect Americans from crypto-based scams. He emphasized the significant financial harm these schemes cause and the DOJ’s commitment to recovering stolen funds. According to Chainalysis, these types of scams were the most profitable for criminals in 2024.
The case is currently before the U.S. District Court for the District of Columbia. If the court rules in the DOJ’s favor, the government will likely seize the $225 million in crypto.
